Question 1

A(n)  _____ is a type of compensation arrangement where an agency charges a client a basic monthly amount for all of its services and credits to the client any media commissions earned.

Accepted Answer

A)  fixed fee method
B)  negotiated commission method
C)  cost-plus agreement method
D)  incentive-based compensation system
E)  objective-and-task compensation system

Question 2

Account planners work with the client as well as other agency personnel including the account executives and media specialists.

Accepted Answer

A) True 
 B)False

Question 3

Proponents of the commission system argue that the system is more flexible than it appears as agencies often perform other services for large clients at no extra charge.

Accepted Answer

A) True 
 B)False

Question 4

Within the creative services department of a full-service agency, once the copy, layout, illustrations, and mechanical specifications of the ad have been completed and approved, the ad is turned over to the _____ department.

Accepted Answer

A)  traffic
B)  account planning
C)  production
D)  research
E)  art

Question 5

Which of the following departments in a full-service agency is responsible for the development and execution of advertisements?

Accepted Answer

A)  Traffic department
B)  Account services department
C)  Media planning department
D)  Creative services department
E)  Production department

Question 6

A sequence of frames or panels that depict a TV commercial in still form is called a(n)  _____.

Accepted Answer

A)  screenplay
B)  creative brief
C)  storyboard
D)  placard
E)  art infusion

Question 7

Which of the following statements is true of media departments?

Accepted Answer

A)  Their brief is primarily creative.
B)  They lack the ability or the authority to negotiate prices.
C)  They review information on demographics and radio listenership.
D)  They are in charge of creating the clients' advertising message.
E)  They are generally headed by an account planner.

Question 8

Which of the following statements is true about outside advertising agencies?

Accepted Answer

A)  Typically, external ad agencies do not use media analysts and researchers.
B)  External agencies are often preferred for their greater skill and expertise levels.
C)  Generally, most external ad agencies do not offer creative services.
D)  External ad agencies are generally cheaper than in-house agencies.
E)  Unlike in-house agencies, outside agencies can be used to portray a singular global imagE.The main reason why outside agencies are used is that they provide the client with the services of highly skilled individuals who are specialists in their chosen fields.An advertising agency staff may include artists, writers, media analysts, researchers, and others with specific skills, knowledge, and experience who can help market the client's products or services.

Question 9

Organizations that specialize in the creation of marketing tools such as websites for the Internet, banner ads, search engine optimization, mobile marketing, and social media campaigns are known as:

Accepted Answer

A)  sales promotion agencies.
B)  public relations firms.
C)  creative boutiques.
D)  interactive agencies.
E)  direct-response agencies.

Question 10

Which of the following is true of an in-house advertising agency?

Accepted Answer

A)  It avoids top management involvement with the marketing communications function.
B)  It increases advertising and promotion costs.
C)  It provides greater stability.
D)  It provides more objectivity and range of services in comparison to outside agencies.
E)  It offers more access to top creative talent.

Question 11

While the advertising department develops the promotional budget, the final decision on allocating funds is usually made by the overall marketing department.

Accepted Answer

A) True 
 B)False

Question 12

Lack of long-term objectivity, flexibility, and creativity are a few of the reasons why a company might move away from:

Accepted Answer

A)  a decentralized marketing system.
B)  an in-house agency.
C)  the use of full-service advertising agencies.
D)  a centralized marketing system.
E)  the use of creative boutiques.

Question 13

As more companies adopt the integrated marketing communications approach to their advertising and promotions:

Accepted Answer

A)  they are increasingly concentrating on a mass media strategy as it is relatively cheaper.
B)  they are reducing their reliance on mass media advertising that is leading to changes in the way they compensate their agencies.
C)  they are likely to move totally to cost-plus compensation systems.
D)  incentive systems are becoming less important in compensating agencies.
E)  fee agreements and cost-plus systems are generally being avoided in favor of the traditional compensation method.

Question 14

A client wants to organize a concert to raise funds for "The Little Ones," an orphanage in Houston. Which specialized service would be responsible for preparing news releases and promoting and managing the concert?

Accepted Answer

A)  A digital agency
B)  A marketing research firm
C)  An interactive agency
D)  A public relations firm
E)  A sales promotion agency

Question 15

_____ are drawings that show what the print ad will look like and from which the final artwork will be produced.

Accepted Answer

A)  Creative briefs
B)  Packshots
C)  Layouts
D)  Art infusions
E)  Product sheets

Question 16

Package design firms, market research companies, photographers, and printers are examples of:

Accepted Answer

A)  sales promotion agencies.
B)  interactive agencies.
C)  collateral service providers.
D)  companies that assist in media buying.
E)  creative boutiques.

Question 17

In-house agencies are preferred by some companies because they keep the marketing communications function more closely tied to top management.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following departments of a full-service agency, analyzes, selects, and contracts for space or time to publish or broadcast the client's advertising message?

Accepted Answer

A)  Research department
B)  Media department
C)  Account management department
D)  Creative services department
E)  Art department

Question 19

One of the more widely used collateral service organizations is the marketing research firm.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a disadvantage of a decentralized organizational system?

Accepted Answer

A)  Inability to handle multiple product lines
B)  Ineffective decision making
C)  Longer response time
D)  Lack of flexibility
E)  Lack of managerial attention

Exam 3: Organizing for Advertising and Promotion: The Role of AD Agencies and Other Marketing Communication Organizations

Which of the following departments of a full-service agency, analyzes, selects, and contracts for space or time to publish or broadcast the client's advertising message?

Correct AnswerverifiedShow Answer

Organizations that specialize in the creation of marketing tools such as websites for the Internet, banner ads, search engine optimization, mobile marketing, and social media campaigns are known as:

Correct AnswerverifiedShow Answer

Package design firms, market research companies, photographers, and printers are examples of:

Correct AnswerverifiedShow Answer

One of the more widely used collateral service organizations is the marketing research firm.

Correct AnswerverifiedShow Answer

A(n) _____ is a type of compensation arrangement where an agency charges a client a basic monthly amount for all of its services and credits to the client any media commissions earned.

Correct AnswerverifiedShow Answer

_____ are drawings that show what the print ad will look like and from which the final artwork will be produced.

Correct AnswerverifiedShow Answer

Within the creative services department of a full-service agency, once the copy, layout, illustrations, and mechanical specifications of the ad have been completed and approved, the ad is turned over to the _____ department.

Correct AnswerverifiedShow Answer

Which of the following statements is true of media departments?

Correct AnswerverifiedShow Answer

Which of the following departments in a full-service agency is responsible for the development and execution of advertisements?

Correct AnswerverifiedShow Answer

Which of the following is true of an in-house advertising agency?

Correct AnswerverifiedShow Answer

A client wants to organize a concert to raise funds for "The Little Ones," an orphanage in Houston. Which specialized service would be responsible for preparing news releases and promoting and managing the concert?

Correct AnswerverifiedShow Answer

Proponents of the commission system argue that the system is more flexible than it appears as agencies often perform other services for large clients at no extra charge.

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of a decentralized organizational system?

Correct AnswerverifiedShow Answer

In-house agencies are preferred by some companies because they keep the marketing communications function more closely tied to top management.

Correct AnswerverifiedShow Answer

Account planners work with the client as well as other agency personnel including the account executives and media specialists.

Correct AnswerverifiedShow Answer

A sequence of frames or panels that depict a TV commercial in still form is called a(n) _____.

Correct AnswerverifiedShow Answer

As more companies adopt the integrated marketing communications approach to their advertising and promotions:

Correct AnswerverifiedShow Answer

While the advertising department develops the promotional budget, the final decision on allocating funds is usually made by the overall marketing department.

Correct AnswerverifiedShow Answer

Which of the following statements is true about outside advertising agencies?

Correct AnswerverifiedShow Answer

Lack of long-term objectivity, flexibility, and creativity are a few of the reasons why a company might move away from:

Correct AnswerverifiedShow Answer

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